Microsoft have confirmed that they are working on sequels to Halo and Project Gotham Racing, for the Xbox.

The company confirmed this news at the X02 North America event that they are holding today, but it's no real suprise as both titles were mentioned at E3 earlier this year when Microsoft talked about their $2bn commitment to Xbox. However at that time it wasn't known if the online versions were simply to be updates or all new sequels.

Halo 2 is said to expand on a number of areas from the original Bungie Studios title, and will feature a whole new array of powerful new weapons, along with further improved graphics, more than twice as many drivable vehicles, and full online play via the Xbox Live network.

Project Gotham Racing 2 will have a re-worked Kudos system, which Bizarre Creations are said to currently be working on, and will allow more ways for gamers to score points, along with a more accurate player ranking system. New cities will also feature in the game, and the announcement by Microsoft suggests that these will include Edinburgh and Hong Kong. Bizarre are also hoping to include vehicles from Ferrari and Porsche, and it'll all be playable online via Xbox Live - we can't wait!

Halo 2 is due for release during 2003, and Projet Gotham Racing 2 will hit the streets sometime during 2004. Further announcements are expected from X02 later today, and as soon we hear more we'll let you know.

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X02: First screens of Project Gotham Racing 2